,i #aacth ,,congress #b;d ,session ,h4 ,r4 #dhhe ,,in ,,the ,,house ,,of ,,representatives ,june #ah1 #bjad ,mr4 ,young of ,indiana 7for himself1 ,mr4 ,delaney1 ,mr4 ,griffin of ,arkansas1 ,mr4 ,larson of ,connecticut1 ,mr4 ,reed1 ,mr4 ,polis1 ,mr4 ,ross1 ,mr4 ,kennedy1 and ,mr4 ,schock7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,financial ,services1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to encourage and support partnerships between the public and private sectors to improve our nation's social programs1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,social ,impact ,bond ,act4 #b4 ,social ,impact ,bonds ,title ,,xx of the ,social ,security ,act 7#db ,u4,s4,c4 #acig7 is amended-- 7#a7 in the heading1 by striking to ,states and inserting and ,programs for2 and 7#b7 by adding at the end the following3 ,c ,social ,impact ,bonds #bjea4 ,purposes ,the purposes of this subtitle are the following3 7#a7 ,to improve the lives of families and individuals in need in the ,united ,states by funding social programs that achieve real results4 7#b7 ,to ensure ,federal funds are used effectively on social services to produce positive outcomes for both service recipients and taxpayers4 7#c7 ,to establish the use of social impact bonds to address some of our nation's most pressing problems4 7#d7 ,to facilitate the creation of public-private partnerships that bundle philanthropic and other private resources with existing public spending to scale up effective social interventions already being implemented by private organizations1 non-profits1 charitable organizations1 and local governments across the country4 7#e7 ,to bring pay-for-performance to the social sector1 allowing the ,united ,states to improve the impact and effectiveness of vital social programs4 #bjeb4 ,social impact bond application 7a7 ,notice ,not later than #a year after the date of the enactment of this ,act1 the ,secretary of the ,treasury1 in consultation with the ,federal ,interagency ,council on ,social ,impact ,bonds1 shall publish in the ,federal ,register a notice that the ,department is seeking proposals from ,states or local government for social impact bond projects in accordance with this section4 7b7 ,required outcomes for social impact bond project ,to qualify as a social impact bond project under this subtitle1 a project must produce a measurable1 clearly defined outcome that results in social benefit and ,federal savings through any of the following3 7#a7 ,increasing work and earnings by individuals who have been unemployed in the ,united ,states for more than six consecutive months4 7#b7 ,increasing employment and earnings of individuals age #af to #bd4 7#c7 ,increasing employment among individuals receiving ,federal disability benefits4 7#d7 ,reducing the dependence of low-income families on ,federal means-tested benefits4 7#e7 ,improving rates of high school graduation4 7#f7 ,reducing teen and unplanned pregnancies4 7#g7 ,improving birth outcomes among low-income families and individuals4 7#h7 ,reducing rates of asthma1 diabetes1 or other preventable diseases among low-income families and individuals4 7#i7 ,increasing the proportion of children living in two-parent families4 7#aj7 ,reducing incidences of child abuse and neglect4 7#aa7 ,increasing adoptions of children from foster care4 7#ab7 ,reducing recidivism among individuals released from prison4 7#ac7 ,other measurable outcomes defined by the ,state or local government that result in positive social outcomes and ,federal savings4 7c7 ,feasibility study required ,the notice described in subsection 7a7 shall require a ,state or local government to submit a feasibility study for the social impact bond project that contains the following information3 7#a7 ,the outcome goals of the project4 7#b7 ,a description of each intervention in the project and anticipated outcome of such intervention4 7#c7 ,rigorous evidence demonstrating that the intervention can be expected to produce the desired outcomes4 7#d7 ,the target population that will be served by the project4 7#e7 ,the expected social benefits to participants who receive the intervention and others who may be impacted4 7#f7 ,projected ,federal1 ,state1 and local government costs and other costs to conduct the project4 7#g7 ,projected ,federal1 ,state1 and local government savings and other savings1 including an estimate prepared by the ,state or local government of the savings to the ,federal1 ,state1 and local government1 on a program-by-program basis and in the aggregate1 if the project is implemented and the outcomes are achieved4 7#h7 ,if savings resulting from the successful completion of the project are estimated to accrue to the ,state or local government1 the likelihood of the ,state or local government to realize those savings4 7#i7 ,a plan for delivering the intervention through a social impact bond model4 7#aj7 ,a description of the expertise of each service provider that will administer the intervention4 7#aa7 ,an explanation of the experience of the ,state or local government1 the intermediary1 or the service provider in raising private and philanthropic capital to fund social service investments4 7#ab7 ,the detailed roles and responsibilities of each entity involved in the project1 including any ,state or local government entity1 intermediary1 service provider1 independent evaluator1 investor1 or other stakeholder4 7#ac7 ,a summary of the experience of the service provider delivering the proposed intervention1 a similar intervention1 or a summary demonstrating the service provider has the expertise necessary to deliver the intervention4 7#ad7 ,a summary of the unmet need in the area where the intervention will be delivered or among the target population who will receive the intervention4 7#ae7 ,the payment terms1 the methodology used to calculate outcome payments1 the payment schedule1 and performance thresholds4 7#af7 ,the project budget4 7#ag7 ,the project timeline4 7#ah7 ,the criteria used to determine the eligibility of an individual for the project1 including how selected populations will be identified1 how they will be referred to the project1 and how they will be enrolled in the project4 7#ai7 ,the evaluation design4 7#bj7 ,the metrics that will be used to determine whether the outcomes have been achieved and how such metrics will be measured4 7#ba7 ,a summary explaining the independence of the evaluator from the other entities involved in the project and the evaluator's experience in conducting rigorous evaluations of program effectiveness including1 where available1 well-implemented randomized controlled trials on the intervention or similar interventions4 7#bb7 ,the capacity of the service provider to deliver the intervention to the number of participants the ,state or local government proposes to serve in the project4 7d7 ,project intermediary information required ,the feasibility study described in subsection 7c7 shall also contain the following information about the intermediary for the social impact bond project 7whether the intermediary is the service provider or other entity73 7#a7 ,experience and capacity for providing or facilitating the provision of the type of intervention proposed4 7#b7 ,the mission and goals4 7#c7 ,information on whether the intermediary is already working with service providers that provide this intervention or an explanation of the capacity of the intermediary to begin working with service providers to provide the intervention4 7#d7 ,experience working in a collaborative environment across government and nongovernmental entities4 7#e7 ,previous experience collaborating with public or private entities to implement evidence-based programs4 7#f7 ,ability to raise or provide funding to cover operating costs 7if applicable to the project74 7#g7 ,capacity and infrastructure to track outcomes and measure results1 including-- 7,a7 capacity to track and analyze program performance2 and 7,b7 experience with performance-based contracting and achieving project milestones and targets4 7#h7 ,role in delivering the intervention4 7#i7 ,how the intermediary would monitor program success1 including a description of the interim benchmarks and outcome measures4 #bjec4 ,awarding social impact bond contracts 7a7 ,timeline in awarding contract ,not later than six months after receiving an application in accordance with section #bjeb1 the ,secretary shall determine whether to enter into a contract for a social impact bond project with a ,state or local government4 7b7 ,considerations in ,awarding ,contract ,in determining whether to enter into a contract for a social impact bond project 7the application for which was submitted under section #bjeb7 the ,secretary1 in consultation with the ,federal ,interagency ,council on ,social ,impact ,bonds 7established by section #bjef7 and the head of any ,federal agency administering a similar intervention or serving a population similar to that served by the project1 shall consider each of the following3 7#a7 ,the value to the ,federal ,government of the outcome expected to be achieved if the outcomes specified in the contract are met4 7#b7 ,the ability of the ,state or local government in collaboration with the intermediary and the service providers to achieve the outcomes4 7#c7 ,the savings to the ,federal ,government if the outcomes specified in contract are met4 7#d7 ,the savings to the ,state and local governments if the outcomes specific in the contract are met4 7#e7 ,the expected quality of the evaluation that would be conducted with respect to the contract4 7c7 ,contract ,authority 7#a7 ,contract requirements ,in accordance with this section1 the ,secretary1 in consultation with the ,federal ,interagency ,council on ,social ,impact ,bonds and the head of any ,federal agency administering a similar intervention or serving a population similar to that served by the project1 may enter into a contract for a social impact bond project with a ,state or local government if the ,secretary determines that each of the following requirements are met3 7,a7 ,the ,state or local government agrees to achieve an outcome specified in the contract in order to receive payment4 7,b7 ,the ,federal payment to the ,state or local government for each outcome specified is less than or equal to the value of the outcome to the ,federal ,government over a period not to exceed #aj years1 as determined by the ,secretary1 in consultation with the ,state or local government4 7,c7 ,the duration of the project does not exceed #aj years4 7,d7 ,the ,state or local government has demonstrated1 through the application submitted under section #bjeb1 that1 based on prior rigorous experimental evaluations or rigorous quasi-experimental studies1 the intervention can be expected to achieve each outcome specified in the contract4 7,e7 ,the ,state1 local government1 intermediary1 or service provider has experience raising private or philanthropic capital to fund social service investments 7if applicable to the project74 7,f7 ,the ,state or local government has shown that each service provider has experience delivering the intervention1 a similar intervention1 or has otherwise demonstrated the expertise necessary to deliver the intervention4 7#b7 ,payment ,the ,secretary shall pay the ,state or local government only if the independent evaluator described in section #bjee determines that the social impact bond project has met the requirements specified in the contract and achieved an outcome specified in the contract4 7#c7 ,limitation ,the ,secretary may not enter into a contract for a social impact bond project under paragraph 7#a7 after the date that is #aj years after the date of the enactment of the ,social ,impact ,bond ,act4 7d7 ,notice of contract award ,not later than #cj days after entering into a contract under this section1 the ,secretary shall publish a notice in the ,federal ,register that includes1 with regard to such contract1 the following3 7#a7 ,the outcome goals of the social impact bond project4 7#b7 ,a description of each intervention in the project4 7#c7 ,the target population that will be served by the project4 7#d7 ,the expected social benefits to participants who receive the intervention and others who may be impacted4 7#e7 ,the detailed roles1 responsibilities1 and purposes of each ,federal1 ,state1 or local government entity1 intermediary1 service provider1 independent evaluator1 investor1 or other stakeholder4 7#f7 ,the payment terms1 the methodology used to calculate outcome payments1 the payment schedule1 and performance thresholds4 7#g7 ,the project budget4 7#h7 ,the project timeline4 7#i7 ,the project eligibility criteria4 7#aj7 ,the evaluation design4 7#aa7 ,the metrics that will be used to determine whether the outcomes have been achieved and how these metrics will be measured4 7#ab7 ,the estimate prepared by the ,state or local government of the savings to the ,federal1 ,state1 and local government1 on a program-by-program basis and in the aggregate1 if the contract is entered into and implemented and the outcomes are achieved4 #bjed4 ,feasibility study funding 7a7 ,requests for funding for feasibility studies ,the ,secretary shall reserve a portion of the funding provided in section #bjeg to assist ,states or local governments in developing feasibility studies required by section #bjeb4 ,to be eligible to receive funding to assist with completing a feasibility study1 a ,state or local government shall submit an application for feasibility study funding containing the following information3 7#a7 ,a description of the outcome goals of the social impact bond project4 7#b7 ,a description of the intervention1 including anticipated program design1 target population1 an estimate regarding the number of individuals to be served1 and setting for the intervention4 7#c7 ,evidence to support the likelihood that such intervention will produce the desired outcome4 7#d7 ,the expected social benefits to participants who receive the intervention and others who may be impacted4 7#e7 ,estimated costs to conduct the project4 7#f7 ,estimates of ,federal1 ,state1 and local government savings and other savings if the project is implemented and the outcomes are achieved4 7#g7 ,an estimated timeline for implementation and completion of the project1 which shall not exceed #aj years4 7#h7 ,with respect to a project for which the ,state or local government selects an intermediary to operate the project1 any partnerships needed to successfully execute the project and the ability of the intermediary to foster such partnerships4 7#i7 ,the expected resources needed to complete the feasibility study for the ,state or local government to apply for social impact bond funding under section #bjeb4 7b7 ,federal selection of applications for feasibility study ,not later than #f months after receiving an application for feasibility study funding under subsection 7a71 the ,secretary1 in consultation with the ,federal ,interagency ,council on ,social ,impact ,bonds and the head of any ,federal agency administering a similar intervention or serving a population similar to that served by the project1 shall select ,state or local government feasibility study proposals for funding based on the following3 7#a7 ,the likelihood that the proposal will achieve the desired outcome4 7#b7 ,the value of the outcome expected to be achieved4 7#c7 ,the potential savings to the ,federal ,government if the social impact bond project is successful4 7#d7 ,the potential savings to the ,state and local governments if the project is successful4 7c7 ,public disclosure ,not later than #cj days after selecting a ,state or local government for feasibility study funding under this section1 the ,secretary shall cause to be published on the website of the ,federal ,interagency ,council on ,social ,impact ,bonds information explaining why a ,state or local government was granted feasibility study funding4 7d7 ,funding restriction 7#a7 ,feasibility study restriction ,the ,secretary may not provide feasibility study funding under this section for more than #ej percent of the estimated total cost of the feasibility study reported in the ,state or local government application submitted under subsection 7a74 7#b7 ,aggregate restriction ,of the total amount appropriated under section #bjeg1 the ,secretary may not use more than #aj1jjj1jjj to provide feasibility study funding to ,states or local governments under this section4 7e7 ,submission of feasibility study required ,not later than six months after the receipt of feasibility study funding under this section1 a ,state or local government receiving such funding shall complete the feasibility study and submit the study to the ,federal ,interagency ,council on ,social ,impact ,bonds4 #bjee4 ,evaluations 7a7 ,contract ,authority ,for each ,state or local government awarded a social impact bond project approved by the ,secretary under this ,act1 the head of the relevant agency1 as determined by the ,federal ,interagency ,council on ,social ,impact ,bonds1 shall enter into a contract with such ,state or local government to pay for the independent evaluation to determine whether the ,state or local government project has met an outcome specified in the contract in order for the ,state or local government to receive outcome payments under this subtitle4 7b7 ,evaluator ,qualifications ,the head of the relevant agency may not enter into a contract with a ,state or local government unless the head determines that the evaluator is independent of the other parties to the contract and has demonstrated substantial experience in conducting rigorous evaluations of program effectiveness including1 where available1 well-implemented randomized controlled trials on the intervention or similar interventions4 7c7 ,methodologies ,to ,be ,used ,the evaluation used to determine whether a ,state or local government will receive outcome payments under this subtitle shall use experimental designs using random assignment or other research methodologies that allow for the strongest possible causal inferences when random assignment is not feasible4 7d7 ,progress ,report 7#a7 ,submission of report ,the independent evaluator shall-- 7,a7 not later than two years after a project has been approved by the ,secretary and biannually thereafter until the project is concluded1 submit to the head of the relevant agency and the ,federal ,interagency ,council on ,social ,impact ,bonds a written report summarizing the progress that has been made in achieving each outcome specified in the contract2 and 7,b7 at the scheduled time of the first outcome payment and at the time of each subsequent payment1 submit to the head of the relevant agency and the ,federal ,interagency ,council on ,social ,impact ,bonds a written report that includes the results of the evaluation conducted to determine whether an outcome payment should be made along with information on the unique factors that contributed to achieving or failing to achieve the outcome1 the challenges faced in attempting to achieve the outcome1 and information on the improved future delivery of this or similar interventions4 7#b7 ,submission to ,congress ,not later than #cj days after receipt of the written report pursuant to paragraph 7#a77;,b71 the ,federal ,interagency ,council on ,social ,impact ,bonds shall submit such report to each committee of jurisdiction in the ,house of ,representatives and the ,senate4 7e7 ,final ,report 7#a7 ,submission of report ,within six months after the social impact bond project is completed1 the independent evaluator shall-- 7,a7 evaluate the effects of the activities undertaken pursuant to the contract with regard to each outcome specified in the contract2 and 7,b7 submit to the head of the relevant agency and the ,federal ,interagency ,council on ,social ,impact ,bonds a written report that includes the results of the evaluation and the conclusion of the evaluator as to whether the ,state or local government has fulfilled each obligation of the contract1 along with information on the unique factors that contributed to the success or failure of the project1 the challenges faced in attempting to achieve the outcome1 and information on the improved future delivery of this or similar interventions4 7#b7 ,submission to ,congress ,not later than #cj days after receipt of the written report pursuant to paragraph 7#a77;,b71 the ,federal ,interagency ,council on ,social ,impact ,bonds shall submit such report to each committee of jurisdiction in the ,house of ,representatives and the ,senate4 7f7 ,limitation on ,cost of ,evaluations ,of the amount made available for social impact bond projects in section #bjeg1 the ,secretary may not obligate more than #ae percent to evaluate the implementation and outcomes of such projects4 #bjef4 ,federal interagency council on social impact bonds 7a7 ,establishment ,there is established the ,federal ,interagency ,council on ,social ,impact ,bonds 7in this section1 referred to as the ,council7 to-- 7#a7 coordinate the efforts of social impact bond projects funded by this subtitle2 7#b7 advise and assist the ,secretary in the development and implementation of such projects2 7#c7 advise the ,secretary on specific programmatic and policy matter related to such projects2 7#d7 provide subject-matter expertise to the ,department of the ,treasury with regard to such projects2 7#e7 ensure that each ,state or local government that has entered into a contract with the ,secretary for a social impact bond project under this subtitle and each evaluator selected by the head of the relevant agency under section #bjee has access to ,federal administrative data to assist the ,state or local government and the evaluator in evaluating the performance and outcomes of the project2 and 7#f7 address issues that will influence the future of social impact bond projects in the ,united ,states4 7b7 ,composition of ,council ,the ,chair of the council shall be a member of the ,national ,economic ,council or the ,domestic ,policy ,council4 ,the ,council shall be composed of one designee1 designated by the head of the relevant agency1 from each of the following3 7#a7 ,office of ,management and ,budget4 7#b7 ,department of ,labor4 7#c7 ,department of ,health and ,human ,services4 7#d7 ,social ,security ,administration4 7#e7 ,department of ,agriculture4 7#f7 ,department of ,justice4 7#g7 ,department of ,housing and ,urban ,development4 7#h7 ,department of ,education4 7#i7 ,department of ,veterans ,affairs4 7#aj7 ,department of the ,treasury4 #bjeg4 ,funding 7a7 ,in general ,out of any money in the ,treasury not otherwise appropriated1 there is hereby appropriated #cjj1jjj1jjj1 to remain available until #aj years after the date specified in section #bjec7;c77#c71 to carry out the activities authorized under this subtitle4 7b7 ,limitation ,of the amounts made available under subsection 7a71 the ,secretary may not use more than #a1jjj1jjj in any fiscal year to support the review1 approval1 and oversight of social impact bond projects1 including activities conducted by-- 7#a7 the ,federal ,interagency ,council on ,social ,impact ,bonds2 and 7#b7 any other agency consulted by the ,secretary before approving a social impact bond project or a feasibility study under section #bjed4 #bjeh4 ,website ,the ,federal ,interagency ,council on ,social ,impact ,bonds shall establish and maintain a public website that shall display the following3 7#a7 ,a copy of1 or method of accessing1 each notice published regarding a social impact bond project pursuant to this subtitle4 7#b7 ,for each ,state or local government that has entered into a contract with the ,secretary for a social impact bond project1 the website shall contain the following information3 7,a7 ,the outcome goals of the project4 7,b7 ,a description of each intervention in the project4 7,c7 ,the target population that will be served by the project4 7,d7 ,the expected social benefits to participants who receive the intervention and others who may be impacted4 7,e7 ,the detailed roles1 responsibilities1 and purposes of each ,federal1 ,state1 or local government entity1 intermediary1 service provider1 independent evaluator1 investor1 or other stakeholder4 7,f7 ,the payment terms1 methodology used to calculate outcome payments1 the payment schedule1 and performance thresholds4 7,g7 ,the project budget4 7,h7 ,the project timeline4 7,i7 ,the project eligibility criteria4 7,j7 ,the evaluation design4 7,k7 ,the metrics used to determine whether the proposed outcomes have been achieved and how these metrics are measured4 7#c7 ,a copy of the progress reports and the final reports relating to each social impact bond project4 7#d7 ,an estimate of the savings to the ,federal1 ,state1 and local government1 on a program-by-program basis and in the aggregate1 resulting from the successful completion of the social impact bond project4 #bjei4 ,community ,reinvestment ,act ,section #hjd of the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bijc7 is amended by adding at the end the following3 7e7 ,social impact bond projects ,in assessing and taking into account1 under subsection 7a71 the record of a financial institution1 the appropriate ,federal financial supervisory agency shall consider1 as a factor1 investments made by the financial institution in social impact bond projects under subtitle ,c of title ,,xx of the ,social ,security ,act4 4 #bjfj4 ,regulations ,the ,secretary1 in consultation with the ,federal ,interagency ,council on ,social ,impact ,bonds1 may issue regulations as necessary to carry out this subtitle4 #bjfa4 ,definitions ,in this subtitle3 7#a7 ,agency ,the term agency has the meaning given that term in section #eea of title #e1 ,united ,states ,code4 7#b7 ,intervention ,the term intervention means a specific service delivered to achieve an impact through a social impact bond project4 7#c7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 7#d7 ,social impact bond project ,the term social impact bond project means a project that finances social services using a social impact bond model4 7#e7 ,social impact bond model ,the term social impact bond model means a method of financing social services in which-- 7,a7 ,federal funds are awarded to a ,state or local government only if a ,state or local government achieves certain outcomes agreed upon by the ,state or local government and the ,secretary2 and 7,b7 the ,state or local government coordinates with service providers1 investors 7if applicable to the project71 and 7if necessary7 an intermediary to identify-- 7i7 an intervention expected to produce the outcome2 7ii7 a service provider to deliver the intervention to the target population2 and 7iii7 investors to fund the delivery of the intervention4 7#f7 ,state ,the term ,state means each ,state of the ,united ,states1 the ,district of ,columbia1 each commonwealth1 territory or possession of the ,united ,states1 and each federally recognized ,indian tribe4 4